OPINION
IMHO: From potty mouths to polished boards: Why governance needs good manners
Four-letter words have been defended as a professional communications strategy. I've got one - what?
Trust is critical in building a strong foundation for good governance and setting the tone for your board to enable effective decision making, robust conversation and debate.
But for this to occur, the boardroom needs to be an environment built on mutual trust and respect among board members.
That might be easier said than done, especially when directors come with strong opinions – and personalities. Ensuring all voices are heard might result in a battle of wills.
So, is there a way to change the dynamic of a boardroom when people aren’t being heard?
This season of Board Matters, made by the Institute of Directors, explores what it means to have the right dynamic for the best decision-making context in the boardroom.
Dr Michael Fraser, General Manager, Learning and Branch Engagement at the Institute of Directors (IoD), says creating the right dynamic is integral to the effective functioning of any board.
“The very best decisions require a sense of collective wisdom, so if you're putting up a barrier to that, you're operating in a sub-optimal decision-making space,” he says.
But that’s not to say challenging conversations can’t be had – these, according to Dr Fraser, need to be underpinned by respect. And where ‘safety’ comes into play, that can mean different things to different people, depending on the context.
The question is, what should a safe space ‘feel’ like, and how will it manifest through a group dynamic in a room or at a meeting?
According to Dr Fraser, it should result in feeling like your voice isn’t just being heard, but that it is also ‘valid’.
“That validity doesn't mean you'll be the dominant voice in the room, or that you will be listened to the most, or that people will do what you ask. It means that your voice and perspectives will be considered, listened to, and thought about,” he says.
A sense of others engaging authentically with you will also be felt. But building trust can also result from acknowledging failure. Within a board context, having time to trial new ideas or even having the opportunity to feel safe to ‘fail’ might not readily present itself.
Making time to interrogate and test ideas is often done best through a learning environment and, today, upskilling is part-and-parcel of a board role with directors needing to stay abreast of issues.
Dr Fraser says education settings such as the IoD's Advanced Directors Course (ADC) provide the best possible space to explore new approaches, and a chance to test, experiment – and ‘fail’ – without fear of judgement.
“The ADC builds this environment in which to learn from peers because governance can be lonely. In the course, you’re in a safe space where you are permitted to get it wrong, especially if you want to consider how something works while in that learning phase,” he says.
Dr Fraser likens this process to a pilot learning to fly safely through a simulated environment where “you're not impacting people's lives” to the same extent.
“You don't learn to fly the aircraft when you're at 30,000 feet in the air, so having a simulator and a smaller aircraft enables you to feel safe if something does go wrong, or in the case of a board role, where an idea or strategy doesn't quite land.”
He says the ADC includes a series of contemporary governance conversations -- the attributes a future director will need, how to best consider climate-related governance issues, and the impact of AI, along with the importance of having a culturally intelligent board.
The key elements of creating the ‘right dynamic’ in the boardroom include acknowledging that the board is there to “benefit from multiple voices.” Next, is ensuring that all voices are being heard.
“If you are not getting a fair hearing you need to ask whether everyone is being listened to, or are some voices being marginalised or dominated? But also, are there voices missing from the group?”
An effective chair will also be watching the group, cognisant of their own behaviour and reactions, as well as those of others in the room, inviting engagement and discussion, especially where people have not spoken up.
“You don't necessarily want that groupthink where everyone just nods and agrees. That undermines the whole point of what the board is there to do. Through a setting like the Advanced Directors Course – an environment of trust where the right conversations are had, not only asks directors to consider what 'a safe space’ should feel like, but also what it means to operate in an environment where that trust, mutual respect, and openness to learn is already at play,” says Dr Fraser.
Listen to the Board Matters – Season 3 podcast trailer below and find out why creating a safe space in the boardroom is more important now than ever before.
Board Matters – Season 3 episodes drop every Wednesday from 4 September until 2 October. Find out more about the episodes here.